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President-elect makes last-minute demand about future of debt ceiling, calling previous deal between Kevin McCarthy and President Joe Biden ‘one of the dumbest political decisions made in years’
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Donald Trump is demanding the House of Representatives votes on the debt ceiling extension (or abolition) “NOW” so any congressional battle falls in Joe Biden’s presidency and not his.
The president-elect said on Sunday the 2023 debt ceiling extension agreed by then-House Speaker Kevin McCarthy and Biden will “go down as one of the dumbest political decisions made in years.”
Under the deal, the debt ceiling was suspended until January 1, 2025, though the Treasury will be able to pay its bills for several months after that. Congress needs to address the issue by around June.
Without the 2023 deal, the US would have defaulted, roiling financial markets worldwide, and likely leading to a downgrade of the nation’s credit rating.
Meanwhile, Trump hailed the H-1B visa program for skilled workers as “great” claiming to have always been in favor of it.
Speaking to The New York Post, the president-elect sided with Elon Musk and Vivek Ramaswamy, after they both defended the need for hiring skilled workers from overseas.
Their statements triggered pushback from MAGA’s “America First” hardliners, including Steve Bannon. They want strict immigration control, and a furious war of words erupted on social media.
Joe Biden still regrets pulling out of the 2024 presidential race and believes he could have beaten Donald Trump for the White House, according to a report.
The outgoing president backed out of the race over the summer following a disastrous first debate against his Republican rival, low approval numbers, and dwindling donations.
But Biden recently told people that despite the issues his campaign faced he is confident he could have defeated Trump in November, sources familiar with the conversations told The Washington Post.
Graeme Massie reports.
Biden also admitted to aides that he had made other mistakes, including the selection of Merrick Garland as attorney general
U.S. President-elect Donald Trump said on Sunday the 2023 debt ceiling extension agreed by then-House Speaker Kevin McCarthy and President Joe Biden will “go down as one of the dumbest political decisions made in years.”
Under the 2023 budget deal, Congress suspended the debt ceiling until Jan. 1, 2025. The U.S. Treasury will be able to pay its bills for several months beyond that deadline, but Congress will have to address the issue, possibly around mid-year.
In a post on Truth Social, Trump said, “The extension of the Debt Ceiling by a previous Speaker of the House, a good man and a friend of mine … will go down as one of the dumbest political decisions made in years.”
He added, “The Democrats must be forced to take a vote on this treacherous issue NOW, during the Biden Administration, and not in June. They should be blamed for this potential disaster, not the Republicans!”
Republicans, however, will control both chambers of Congress beginning on Jan. 3 and at least some of the party’s lawmakers would have to go along with a debt limit increase or elimination in order for it to become law.
Without the 2023 debt limit increase, the United States would have seen a historic default on its debt payments that would have roiled financial markets worldwide.
A debt default would also likely have brought a downgrade in the U.S. credit rating, raising borrowing costs for businesses and individuals.
At the time, several far-right Republicans in the House of Representatives had pushed for deeper federal spending cuts as a condition for raising the debt limit than what had been negotiated.
About a week ago, with U.S. government discretionary funding due to expire on Dec. 20, Trump, encouraged by billionaire Elon Musk, demanded the debt limit either be eliminated or extended, possibly to 2029 when his presidency would end.
That idea was tacked onto an extension of government funding into March, but it was quickly voted down by a coalition of House Democrats and hard-right Republicans, many of whom represent districts in Trump-leaning states.
A government-funding bill without a debt-limit provision was then enacted into law.
Reuters
Treasury Secretary Janet Yellen said her agency will need to start taking “extraordinary measures,” or special accounting maneuvers intended to prevent the nation from hitting the debt ceiling, as early as January 14, in a letter sent to congressional leaders Friday afternoon.
“Treasury expects to hit the statutory debt ceiling between January 14 and January 23,” Yellen wrote in a letter addressed to House and Senate leadership, at which point extraordinary measures would be used to prevent the government from breaching the nation’s debt ceiling — which has been suspended until Jan. 1, 2025.
Continue reading…
Yellen said the treasure will need to take ‘extrodinary measures’ to prevent the nation from hitting the debt ceiling early next year
Washington joined in mourning on Sunday after news of former President Jimmy Carter’s death was announced by Chip Carter, his son.
The nation’s 39th president was renowned for his committment to public service in the years after his exit from political life, and earned a strong reputation for helping America’s neediest families in his post-presidential years. After news of his passing was reported by the Atlanta Journal-Constitution, tributes began to swiftly pour in for the 100-year-old statesman.
John Bowden reports.
Washington mourns a ‘humble public servant’: Jimmy Carter, the first US president to reach the age of 100
While Washington is focused on honoring former President Jimmy Carter, who passed away today, after offering his own tribute, Donald Trump has taken to Truth Social to talk about the debt ceiling.
The President-elect wants House Democrats to be forced to vote on the debt ceiling while President Joe Biden is still in office and not when he is in the White House in June.
He also said the decision to push the vote into June by the former speaker, whom he calls “a good man and a friend of mine” was “one of the dumbest political decisions made in years.”
Here’s what he wrote on Truth Social in full:
The extension of the Debt Ceiling by a previous Speaker of the House, a good man and a friend of mine, from this past September of the Biden Administration, to June of the Trump Administration, will go down as one of the dumbest political decisions made in years. There was no reason to do it – NOTHING WAS GAINED, and we got nothing for it – A major reason why that Speakership was lost. It was Biden’s problem, not ours. Now it becomes ours. I call it “1929” because the Democrats don’t care what our Country may be forced into. In fact, they would prefer “Depression” as long as it hurt the Republican Party. The Democrats must be forced to take a vote on this treacherous issue NOW, during the Biden Administration, and not in June. They should be blamed for this potential disaster, not the Republicans!
As tensions flare between Elon Musk and Trump’s MAGA allies, President-elect Donald Trump posted what appeared to be a personal message to Musk on Truth Social, claiming that fellow billionaire Bill Gates asked to come to Mar-a-Lago.
In an early morning post on Friday, Trump suggested the Microsoft co-founder had asked to come to Mar-a-Lago. The 78-year-old Republican encouraged him to visit.
Kelly Rissman has the story of the post that looked like a direct message…
President-elect’s cryptic message comes amid his ‘first buddy’ Elon Musk’s feud with other MAGA allies over H-1B visas
President José Raúl Mulino of Panama brushed off U.S. President-elect Donald Trump’s baseless claim that Chinese soldiers are “operating the Panama Canal,” calling it “nonsense.”
In a Christmas Day message on Truth Social, Trump sarcastically wished a merry Christmas to “the wonderful soldiers of China, who are lovingly, but illegally, operating the Panama Canal” and “making certain that the United States puts in Billions of Dollars in ‘repair’ money, but will have absolutely nothing to say about anything.”
He then claimed the Panamanian government is “ripping off” the United States at the Panama Canal.
Ariana Baio reports.
President-elect escalates threats against Panama, falsely claiming Chinese soldiers are controlling the canal
Elon Musk has declared that “hateful, unrepentant racists” should be removed from the Republican Party “root and stem” as the in-party feud over H-1B visas intensifies.
Conversations around H-1B visas have divided Donald Trump’s party, with his Department of Government Efficiency heads Musk and Vivek Ramaswamy on one side and other allies like Laura Loomer on the other. The Space X founder escalated the feud on Friday night when he called for some “contemptible fools” in the GOP to be removed.
Musk made the statement in response to a post on X by Neera Tanden, President Joe Biden’s director of the U.S. Domestic Policy Council.
Kelly Rissman has the details.
‘They will absolutely be the downfall of the Republican Party if they are not removed,’ Tesla and SpaceX tycoon warns
President-elect Donald Trump has paid tribute to former President Jimmy Carter saying that Americans “owe him a debt of gratitude.”
Here’s the full statement posted on Truth Social:
I just heard of the news about the passing of President Jimmy Carter. Those of us who have been fortunate to have served as President understand this is a very exclusive club, and only we can relate to the enormous responsibility of leading the Greatest Nation in History.
The challenges Jimmy faced as President came at a pivotal time for our country and he did everything in his power to improve the lives of all Americans. For that, we all owe him a debt of gratitude.
Melania and I are thinking warmly of the Carter Family and their loved ones during this difficult time. We urge everyone to keep them in their hearts and prayers.
Steve Bannon joined the MAGA immigration civil war with gusto on Friday, calling Elon Musk a “toddler,” and telling the owner of X to “bring it.”
As Musk doubled down on his support for H-1B work visas and criticism of American workers, Bannon posted on the social media platform Gettr: “Someone please notify ‘Child Protective Services’— need to do a ‘wellness check’ on this toddler.”
The former Trump adviser and War Room podcast host made the post in reaction to Musk telling a critic of his stance on immigration to “f*** yourself in the face.”
Read on…
Deepening schism over immigration and visas splits MAGA, pitting ‘America First’ cohort against Silicon Valley Trump supporters
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